Morning Read: After Currency-Hedged Japan, Currency-Hedged Germany

By Brendan Conway

Market check: Index futures are slightly higher. The price of gold is down 1.1$ to $1,369 and silver has lost 1.8% to $22.18.

Fund watch:Deutsche Bank’s db X-trackers MSCI Germany Hedged Equity Fund (DBGR), slated to launch on May 31, won’t be the first Germany ETF on the U.S. market, but it will be the first euro-hedged one. It’s something of a trend to look for ETFs that screen out the currency impact — or, rather, the huge success of this approach when it comes to Japan has drawn it more attention. Footnote: The fund rolling out on May 31 technically already exists. The company said this week in a press release it is converting db X-trackers MSCI Canada Hedged Equity Fund (DBCN) into the currency-hedged tracker of German stocks. The fund will see a delayed opening on May 31, after which it will be available for trading. Converting or otherwise rededicating an unsuccessful ETF is less common than simply shutting one down and/or launching a new one, but it’s not unprecedented. The Canada ETF has just $4.5 million in assets.

About Focus on Funds

As exchange-traded funds and other investing vehicles have ballooned in number, the task of figuring out what works well and what doesn’t has only gotten harder. Barrons.com’s Focus on Funds looks under the hood of ETFs, mutual funds and hedge funds for overlooked values, actionable ideas and the latest pitfalls for fund investors.